ZF Commercial Vehicle Systems faces $2.5m customs demand

ZF Commercial Vehicle Control Systems India Limited received a customs demand of INR 21.06 crore plus interest and an equal penalty from Chennai customs authorities on July 31.

The demand stems from alleged incorrect classification of imported parts and components used in anti-lock braking systems and air braking systems.

The company maintains its classification was correct and intends to dispute the demand. Despite the significant amount, ZF states the order will have no material impact on its financials or operations.